An appropriation made by the personal representatives is treated as a sale for the purposes of this relief if it is made
- in satisfaction of a pecuniary legacy
- with the consent of the legatee, where there is no power of appropriation without that consent.
It follows from this that where the Will allows appropriation of assets in satisfaction of a pecuniary legacy without consent, such appropriation, even if made with consent, should not be treated as a sale.
If it is claimed that the personal representatives do not need the legatee’s consent to the appropriation, provided they can confirm that the legatee falls within s.41 Administration of Estates Act 1925 then the appropriation can be accepted. (Legatees falling within the scope of the act include unborn children, untraced beneficiaries, a mentally disordered person without a receiver.) In all other cases you should refer the claim to Technical (IHTM01081). You should also refer your case to Technical (IHTM01081) if it is claimed that the appropriation was in favour of a residuary beneficiary.